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Is Exim going to flop?
America’s Export-Import Bank (Exim) is tapped out. Its authority runs out on May 31 and Congress has to agree to some form of extension. Exim has $100 billion of borrowing authority, none of which shows up on the federal balance sheet. It may have already reached its $100 billion limit; there are billions of additional requests for financing that may not get fulfilled if its charter is not extended and its debt limit is not increased.
The Administration has requested a 40% increase in Exim’s borrowing authority. This would keep Exim afloat until 2015. The Republicans, led by Eric Cantor, have made a counter proposal to increase the debt limit by only $13 Billion. Cantor’s plan would have Exim run out of money in less than one year. So there is a fight brewing on this issue. It is the same fight that has been going on over every economic issue. Conservatives want to cut back on big programs, liberals want to expand them as fast as possible. Some on the Pro side include the Administration, big exporters like Boeing, liberals and their press:
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There are many voices on the Con side:
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Central to the issues at Exim is Boeing. From 2005 to 2010 Exim financed 634 Boeing aircraft. In 2011 it lent foreign airlines another $11.4B. This lending has surely helped Boeing, but it’s killing the domestic air carriers which have to compete on overseas routes.
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Delta Airlines has sued Exim over its lending to Air India. The lawsuit has to be resolved as part of the extension of the debt limit. Liberal guys, like Chuck Schumer have been talking to Delta. The proposal is to offset the competitive disadvantage that Exim creates, with new subsidies for the airlines.
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Subsidies that create inequities that are fixed with more subsidies is bad government. I can’t see the Delta Airlines “fix” getting inked without a large price tag. That cost will be the Republicans insisting that any subsidies be “paid” for with other cuts. A pissing match appears to be in the offing.
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When S&P downgraded the USA, it pointed at political gridlock and the inability of D.C. to agree to confront issues as the principal reason for the downgrade. The fight over Exim is a good example of that gridlock. I’m 70% confident that an Exim "patch" will be in place within the next few weeks. That leaves a 30% chance for this to go wrong. If it gets nasty, it will highlight all that is wrong with the country.
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The following video is an edited version of one that is making the rounds on YouTube. This has no ads and runs 64 seconds. Obama’s Exim flip-flop is worth noting.
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A fan of Mr. Obama responds to your video:
http://www.youtube.com/watch?v=m6php5DVo2g
LOL. They will vote for him, nonetheless. And we are waiting for people to wake up to this charade? Georgle Carlin was so right.
End it period, let Boeing get competitive and finance their own shit. I'm not interested in helping anymore.
Now that is a piece of airline history. The Pan Am ship named after the founder.
Did we have an EXIM Bank in 1920 when we were the envy of the world with the highest living standard for working men in the world, NO. I rest my case.
Whats the difference between Obama and a pair of flip flops? Nothing!
when your flip flops out live their use, you get to throw them away - without being called a racist
If it goes wrong, it will signal what is wrong with this countyry"; No. this is wrong. The existence of this EXIM entity signals what is wrong with this country. This is the correct statement. Meditate on this until you understand it.
"When S&P downgraded the USA, it pointed at political gridlock and the inability of D.C. to agree to confront issues as the principal reason for the downgrade. The fight over Exim is a good example of that gridlock. I’m 70% confident that an Exim "patch" will be in place within the next few weeks. That leaves a 30% chance for this to go wrong. If it gets nasty, it will highlight all that is wrong with the country"
Double speak at it's finest. So trying to stop the runaway spending is not confronting the issue but proof that DC is broken? More white is black, up is down 1984 horse shit. If it were not for gridlock that wobbling mass of wreckage called DC would have crushed us years ago. I say long live gridlock.
"government that governs least governs best"
As far as Exim is concerned, let is go by the wayside.
This is is bit off topic but 2 of the greatest artists (Bruce and WB-7) have struck again. I am going to post a link to some artwork done with a still camera (northern lights) that you might appreciate.
http://vimeo.com/40555466
Beautiful vimeo. Perfect for Earth Day.
Very nice Vimeo indeed!
What is so amazing is that was done with a STILL CAMERA! The time and effort to do it was incredible. Thousands of frames taken and moving the camera (what appears to be) a centimeter or so per shot on the x and y and z axis (plus zooming in) created the motion. Outstanding and time consuming work. But we all know now who took the picture of the 747 after bruce painted it!...WB-7... It's a conspiracy I tell ya!
This is not capitalism. This is crony corporatism. Any libtards or conswervatives who think we have capitalism, or that Obomba is a socialist have no clue. So "capitalist" Boeing goes to the government for help. The government gifts them billions of taxpayer money to sell planes to Air India. But that hurts Delta, so they go to the government for help. Layer on things like government handouts to Exxon, government handouts to Solyndra, government handouts to Goldman...and anyone who calls America a "capitalist" system has no clue what they're talking about.
What part of the government is broke are some not getting?
The ruling class is the part that knows that the government is not broke; they will continue printing bullshit, and you will continue using it; because you have no choice. Simple question, simple answer.
Say, did Con Air benefit from ExIm bank financing? Sorry, no, that's domestic. I guess it's just the planes used for rendition.
$650 Million to Enron. Pfffftt. Shut 'er down.
http://www.rense.com/general20/senateprobesAL.htm
I didn't know Obama went home to visit Indonesia in November.
Shut.It.Down.
The only correct answer; along with; the UN, the EPA, the DEA, the FDA, the DOE, the CIA, and all the foreign military adventures. All of lthem. Immediately, this is the only correct answer. Banks, are merely a distraction; the problem is the Federal Government; always, every time, alll the time.
The NSA should be added to your list.
And the TSA! ?What presidential candidate wants to eliminate the TSA? (hint: his initials are R.P.)
EXIM "...provides financing for transactions that would otherwise not take place because commercial lenders are either unable or unwilling to accept the political or commercial risks inherent in the deal."
Do you have an overseas business and can't get a sub-prime loan? Crappy credit score? EXIM can finance you in less than 20 minutes! Are you an American manufacturer and your product can't compete on the merits? EXIM can subsidize loans to your foreign customers! Want to destroy the US economy, but still appear to be frugal to the peons you represent? Support Eric Cantor to give EXIM only another 13,000,000,000 FRNs.
oBLAHma, the human asswipe!
If only Obama had been Made in America.
what a red herring. his hundred greatest sins do not include being a foreigner even if he is one. this harping on his being a communist, a muslim, a kenyan, whatever, obscure and trivialize the horrible, horrible things he has done and promises to do again: imprison forever or kill citizens without trial, jail and torture those who uncover corruption and war crimes, refuse to prosecute anyone of consequence in the greatest and most dangerous control fraud in history, continue old and start new preemptive wars, and give enormous sums of money this nation doesn't have to oligopolies in the financial and healthcare industries rather than reforming and restraining them for the benefit of the average citizen. for starters.
Many people were made in America who are only interested in profit and in the special world they will live in as members of the global elite, and not in the fate or success of America; Obama is only one of them.
Panderer-in-chief just looking to secure as much funding as possible, what's the big deal?